VFC closes within previous day's range
V.F. Corporation (VFC) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving lower for the 2nd day in a row, VFC ended the month -0.95% lower at 60.36 after edging lower $0.14 (-0.23%) today on high volume, underperforming the S&P 500 (0.77%) following today's earnings report. Closing within the prior day's range, prices missed to decisively move beyond the previous day's trading range.
Daily Candlestick Chart (VFC as at Jul 31, 2020):
VFC reported earnings of $-0.57 per share before today's market open. With analysts having expected an EPS of $-0.68, V. F. Corporation beat market expectations by 16.2%. The company's last earnings report was released on May 15, 2020, when V. F. Corporation reported earnings of $0.1 per share surpassing market expectations by 433.3%.
Friday's trading range has been $3.95 (6.68%), that's far above the last trading month's daily average range of $1.90. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for VFC.
In a volatile session, prices traded above the prior day's high as well as below the previous day's low, forming a bullish Outside Bar. The last time this happened on June 15th, VFC gained 4.52% on the following trading day.
After trading as low as 58.08 during the day, the market found support at the 100-day moving average at 58.51. Unable to break through the key technical resistance level at 61.48 (R1), V. F. closed below it after spiking up to 62.03 earlier during the day. The failure to close above the resistance might increase that levels significance going forward.
Although still in a long-term downtrend, the short and medium-term trends both turned bullish already.
Buying could accelerate should prices move above the nearby swing high at 62.22 where further buy stops might get activated. As prices are trading close to July's high at 63.60, upside momentum could speed up should the share mark new highs for the month. As prices are trading close to July's low at 57.91, downside momentum might accelerate should the stock mark new lows for the month.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bullish Bounce off SMA 100" stand out. Its common bullish interpretation has been confirmed for V. F.. Out of 26 times, VFC closed higher 76.92% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 80.77% with an average market move of 2.04%.